Over 1000 jobs at risk due to caravan tax

Over 1000 jobs at risk due to caravan tax

March 29, 2012 2:46 PM

If you buy a touring caravan, VAT is paid at the standard rate of 20 per cent. If you buy a static caravan, VAT is zero rated. In his Budget last week, George Osborne decided to bring static caravans in line with touring caravans.

Simplifying the tax system is a good thing, but he has used simplification as an excuse to grab more of our cash by raising taxes, particularly after raising the standard VAT rate. Why can't politicians level these kinds of differences down instead of up all the time?

"This decision could have a really big impact on jobs. We have already lost so many jobs in this area, we really can't afford to lose any more. The Government announced it out of the blue, without consultation and without thinking about the impact."

Graham Stuart, the MP for Beverley and Holderness, and David Davis have demanded a meeting with the government. Mr Stuart's constituency is home to ABI Caravans. Mel Copper, chief executive of Beverley's ABI (UK), said:

"Looking at the effect it will have on us and our clients, and bearing in mind we make up about 25 per cent of the UK market, this will lead to about 1,000 job losses. The retail consumer is going to be asked to pay 15 per cent more, which in the current economic climate is a major worry."

Simplification should mean just that. Taxes should be transparent and easy to understand. This is a classic example of politicians and mandarins in Whitehall grabbing more of our cash without understanding the implications to local economies around the country. I bet if you had asked them before the Budget how many static caravans are manufactured in Hull and East Yorkshire, they wouldn't have been able to give you an answer.

If Osborne wants more cash, he could take up our suggestions such as freezing the international aid budget and scrapping HS2. He could also look at scaling back the hugely bureaucratic structures in Whitehall.

We in the Hull and East Riding TPA will do everything we can to oppose this tax grab, and will work with others to persuade the Chancellor to think again.If you buy a touring caravan, VAT is paid at the standard rate of 20 per cent. If you buy a static caravan, VAT is zero rated. In his Budget last week, George Osborne decided to bring static caravans in line with touring caravans.

Simplifying the tax system is a good thing, but he has used simplification as an excuse to grab more of our cash by raising taxes, particularly after raising the standard VAT rate. Why can't politicians level these kinds of differences down instead of up all the time?

"This decision could have a really big impact on jobs. We have already lost so many jobs in this area, we really can't afford to lose any more. The Government announced it out of the blue, without consultation and without thinking about the impact."

Graham Stuart, the MP for Beverley and Holderness, and David Davis have demanded a meeting with the government. Mr Stuart's constituency is home to ABI Caravans. Mel Copper, chief executive of Beverley's ABI (UK), said:

"Looking at the effect it will have on us and our clients, and bearing in mind we make up about 25 per cent of the UK market, this will lead to about 1,000 job losses. The retail consumer is going to be asked to pay 15 per cent more, which in the current economic climate is a major worry."

Simplification should mean just that. Taxes should be transparent and easy to understand. This is a classic example of politicians and mandarins in Whitehall grabbing more of our cash without understanding the implications to local economies around the country. I bet if you had asked them before the Budget how many static caravans are manufactured in Hull and East Yorkshire, they wouldn't have been able to give you an answer.

If Osborne wants more cash, he could take up our suggestions such as freezing the international aid budget and scrapping HS2. He could also look at scaling back the hugely bureaucratic structures in Whitehall.

We in the Hull and East Riding TPA will do everything we can to oppose this tax grab, and will work with others to persuade the Chancellor to think again.

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Welcome to The TaxPayers' Alliance, Britain's grassroots campaigning group dedicated to reforming taxes, cutting spending and protecting taxpayers. If you like what we do, become a supporter now by signing up to our mailing list using the form below. John O'Connell, Chief Executive